Fund Accountability Statement Closeout Audit of the Ministry of Agriculture, Irrigation and Livestock in Afghanistan, Under Agricultural Development Fund, Implementation Letter 306‐IL‐10‐OAG‐16, July 18, 2010 to June 30, 2015
USAID/Afghanistan determine the allowability, and collect as appropriate, $1,329,286 in ineligible questioned costs, as detailed on pages 18 of the audit report.
USAID/Afghanistan verify that the Ministry of Agriculture, Irrigation and Livestock corrects the three material weaknesses (1. the recipient has not exercised its right to liquidate the collaterals against the loans written off over the project period, 2. the recipient has no documented financial statement closing process, and 3. the recipient has weaknesses in information technology general controls) and one significant deficiency in internal control related to the accounting application used by the recipient as detailed on pages 27 to 32 of the audit report.
USAID/Afghanistan verify that the Ministry of Agriculture, Irrigation and Livestock corrects the three instances of material noncompliance (1. loans and advances were written off in excess of the allowed 5% threshold of loans portfolio, 2. operating expenditure included in the fund accountability statement that were not included in the approved budget, and 3. advances paid to staff and prepayment to contractors against operational expenses. These payments were not provided in the budget) as detailed on pages 37 to 39 of the audit report.